National Gypsum Asbestos Trust Annual Reports, 2010–2025

NGC ended 2025 with $197.14 million in investments, up $1.98 million. Interest and dividends of $5.01 million and realized gains of $14.41 million outweighed $1.63 million in unrealized losses. The Trust paid $10.68 million in asbestos claims, $3.54 million in income taxes, and $1.51 million in operating and legal costs. Investment results were sufficient to fund these cash requirements and modestly increase the portfolio.

Net claimants’ equity rose by $0.34 million to $197.67 million under the Trust’s special-purpose accounting. Claims expense was $10.68 million, operating and legal expense was $1.52 million, and federal income tax expense was $5.25 million. The report also records the death of trustee Anne N. Foreman and the decision, with the agreement of the Trustees’ Advisory Committee and Legal Representative, for Anne M. Ferazzi to continue as sole trustee.

NGC ended 2024 with $195.16 million in investments, a decline of $0.91 million. Interest, dividends, and realized and unrealized gains totaled $16.84 million. The Trust paid $11.97 million in asbestos claims, $4.64 million in income taxes, and $1.57 million in operating and legal costs, with a $0.23 million tax refund also received. Claims expense was $11.79 million, operating and legal expense was $1.63 million, and tax expense was $2.92 million.

Net claimants’ equity increased by $0.50 million to $197.33 million after restating opening equity to $196.83 million. The restatement removed $12.26 million in deferred tax liabilities under a new policy that records current federal income taxes rather than deferred taxes on unrealized gains; that adjustment was not a cash receipt or investment gain. The figures are from NGC’s audited 2024 report, filed April 25, 2025 (Doc. 591).

NGC’s investments decreased by $17.78 million in 2023 to $196.06 million, despite $26.54 million in interest, dividends, and realized and unrealized investment gains. The Trust paid $38.40 million in asbestos claims, compared with $10.58 million in 2022, together with $3.84 million in income taxes and $2.23 million in operating and legal cash costs. Claims distributions were the principal draw on the portfolio.

Under the report’s special-purpose accounting, net claimants’ equity fell by $22.05 million to $184.56 million. Claims expense of $38.11 million, operating and legal expense of $2.30 million, and tax expense of $8.18 million exceeded investment income and gains. The report uses an opening equity balance of $206.62 million, $182,000 above the closing figure originally printed in the 2022 report. It also describes the decision to liquidate Trust Services, Inc. and the transition to a third-party services agreement beginning September 1, 2023.

NGC ended 2022 with $213.85 million in investments, down $47.17 million. Unrealized investment losses of $36.85 million were the largest contributor to the decline, while the Trust paid $10.58 million in asbestos claims and $2.90 million in operating and legal costs. The statement of changes in claimants’ equity reports $11.22 million in claims expense, $2.76 million in operating and legal expense, and a $14.51 million tax benefit that partially offset investment losses.

The Trust adopted special-purpose accounting in 2022, excluding future claims and unaccepted filed claims from recorded liabilities. Consequently, the prior year’s fund deficit is not directly comparable to the positive net claimants’ equity now reported. The 2022 report shows equity declining by $32.92 million from an adjusted opening balance of $239.36 million to $206.44 million. The 2023 report subsequently presents those opening and closing balances $182,000 higher, at $239.54 million and $206.62 million, while retaining the same annual decrease; the figures here identify the presentation used rather than treating that difference as investment income.

NGC’s investments were nearly unchanged in 2021, declining by $0.44 million to $261.01 million. The Trust reported $19.52 million in investment income, $15.48 million in asbestos claim payments, $3.13 million in operating and legal cash outflows, and $3.42 million in income tax payments. It also received $2.07 million from the release of funds held in escrow in connection with the Center for Claims Resolution settlement.

The fund deficit narrowed from $655.79 million to $631.07 million. Investment income and a $14.07 million favorable adjustment to accrued asbestos injury claims, which includes the escrow proceeds, exceeded operating and legal expense of $3.13 million and tax expense of $5.74 million. This deficit incorporates estimated future and unresolved claims and is distinct from the investment balance. Positive investment results and the escrow recovery broadly covered the year’s cash requirements.

NGC ended 2018 with $231.14 million in investments, down $66.11 million. Asbestos claim payments totaled $48.54 million, including $42.10 million in supplemental payments to 48,000 previously paid claimants after the trustees voted on July 24 to raise the payment percentage from 28% to 40%. A $6.46 million net investment loss and $11.11 million in operating, legal, and tax cash outflows also reduced the portfolio.

The fund deficit nevertheless improved from $854.30 million to $782.09 million, largely because of a $78.14 million favorable adjustment to accrued asbestos injury claims and a $5.34 million tax benefit. Operating and legal expense was $4.70 million. This improvement reflects the accounting for estimated claims obligations and taxes, while invested assets declined materially under the combined effects of supplemental payments and investment losses. The payment percentages are historical.

NGC’s investments ended 2017 at $297.24 million, down $6.21 million despite $36.25 million in net investment earnings. Asbestos claim payments totaled $37.27 million, including $31.52 million in supplemental payments to 47,232 previously paid claimants after the trustees voted on April 27 to increase the payment percentage from 18% to 28%. Operating, legal, and tax cash outflows were $5.19 million.

The fund deficit narrowed from $900.27 million to $854.30 million, reflecting investment gains and a $26.23 million favorable adjustment to accrued asbestos injury claims, partly offset by $4.17 million in operating and legal expense and $12.49 million in tax expense. The deficit includes estimated future and unresolved claims. The investment decline occurred in a year of substantial supplemental distributions, rather than poor investment performance; the stated payment percentages describe the historical reporting period.

NGC ended 2016 with $303.46 million in investments, an increase of $5.86 million. Net investment earnings of $16.87 million exceeded $6.75 million in asbestos claim payments and $4.26 million in operating, legal, and tax cash outflows. Operating and legal expense was $3.99 million, and federal income tax expense was $0.91 million.

The reported fund deficit narrowed from $1.09 billion to $900.27 million. Most of the improvement came from a $182.17 million favorable adjustment to accrued asbestos injury claims, alongside positive investment results. This deficit includes estimates of future and unresolved claims, so its decrease should be distinguished from the considerably smaller increase in invested assets available to fund distributions.

NGC’s investments fell by $17.52 million during 2015, ending at $297.59 million. The statement of changes in investments reports a $1.69 million net investment loss, $8.80 million in asbestos claim payments, and $7.03 million in operating, legal, and tax outflows. Accrual-basis operating and legal expense was $4.57 million; the financial statements also recognized a $4.35 million federal income tax benefit.

Despite the decline in invested assets, the fund deficit narrowed from $1.68 billion to $1.09 billion. A $582.87 million favorable adjustment to accrued asbestos injury claims drove that accounting improvement. The reduction in estimated claims obligations should be distinguished from investment performance: the portfolio lost value while claims and other expenditures continued to draw on assets.

NGC ended 2014 with $315.11 million in investments, up $5.21 million from the prior year. Net investment earnings of $15.62 million exceeded $4.28 million in asbestos claim payments and $6.13 million in operating, legal, and tax cash outflows. The statement of changes in fund deficit reports operating and legal expense of $4.29 million and federal income tax expense of $3.57 million.

The fund deficit improved from $1.79 billion to $1.68 billion, with a $105.80 million favorable adjustment to accrued asbestos injury claims accounting for most of the improvement. Because this deficit includes estimated future and unresolved claims, its movement differs from the change in investments. Both the investment balance and the estimated funding position improved during the year, but the much larger change in the latter primarily reflects the claims estimate.

NGC’s investments increased by $11.19 million in 2013, ending the year at $309.90 million. The statement of changes in investments reports $25.71 million in net investment earnings, approximately $7.53 million in asbestos claim payments, and $6.99 million in operating and legal outflows. Operating and legal expense was $4.81 million, and federal income tax expense was $7.54 million.

The fund deficit narrowed from $1.92 billion to $1.79 billion, chiefly reflecting a $114.62 million favorable adjustment to accrued asbestos injury claims, supplemented by investment income and gains. That improvement largely reflects changes to estimated claims obligations rather than new cash received. Separately, investment earnings exceeded distributions and other portfolio outflows, allowing the Trust’s invested assets to grow.

NGC ended 2012 with $298.71 million in investments, a decrease of $7.64 million. Net investment earnings of $25.44 million and insurance settlements of $1.14 million partially replenished $27.35 million in asbestos claim payments and $6.88 million in operating and legal cash outflows. Accrual-basis operating and legal expense was $5.23 million, and federal income tax expense was $6.18 million.

The fund deficit narrowed from $1.97 billion to $1.92 billion, helped by a $37.25 million favorable adjustment to accrued asbestos injury claims and positive investment results. The deficit includes estimated unresolved and future claims and is separate from the assets available for payments. Although the reported deficit improved, payments and other cash requirements still exceeded the additions to the investment portfolio.

NGC’s investments declined from $374.12 million to $306.35 million in 2011. The statement of changes in investments records $80.68 million in asbestos claim outflows and $5.62 million in operating and legal outflows against $18.54 million in net investment earnings. Operating and legal expense was $5.52 million, while federal income tax expense was $1.35 million. The claims note separately reports approximately $76.75 million paid; the approximately $3.94 million difference corresponds to funds placed in escrow in connection with the settlement involving the Center for Claims Resolution.

The fund deficit increased from $827.88 million to $1.97 billion, driven mainly by a $1.15 billion upward adjustment to accrued asbestos injury claims. That deficit reflects estimated claims obligations, including unresolved claims, rather than an equivalent cash expenditure. The year therefore shows both a substantial drawdown of investments to fund claims-related outflows and a major revision to the estimated long-term claims burden.

NGC ended 2010 with $374.12 million in investments, down from $404.13 million. The statement of changes in investments reports $55.63 million in asbestos claim payments and $4.87 million in operating and legal cash outflows, exceeding $27.61 million in net investment earnings, $1.59 million in insurance settlements, and a $1.29 million tax refund. Operating and legal expense on the accrual basis was $5.12 million, with federal income tax expense of $6.46 million.

The reported fund deficit widened from $641.35 million to $827.88 million, principally because of a $203.98 million upward adjustment to accrued asbestos injury claims. This accounting measure includes estimates of unresolved and future claims; it is distinct from the Trust’s investment balance and should not be read as a cash loss of that amount. The year combined positive investment results with substantial distributions and a higher estimated claims burden.